The present invention relates to a system and method for product distribution. In particular, the present invention relates to delivering products directly to the end customer bypassing retailer's warehouses.
Consumer product goods (CPG) companies are engaged in continuous improvement of the delivery process. Given the intense competition between brands and in an effort to reduce costs, CPG companies have a vital interest in direct interaction with their customers. These customers may include, for example, retailers, restaurants, consumers, etc. CPG companies are under pressure to increase operating efficiencies since the markets served are relatively slow growing.
Conventional consumer product delivery processes suffer from many disadvantages. First, most deliveries are sent to a retailer's warehouse without direct interaction with end customers, so CPG companies don't have direct influence on consumers. Even if the CPG company delivers directly to customers, the delivery drivers are only equipped to deliver pre-ordered goods and do not have any flexibility in selling the goods. For example, delivery drivers cannot provide direct promotion or sales of the manufacturer's key products, cannot cross sell or up sell during the delivery process, are unable to change customer orders and cannot fulfil additional orders for goods from truck stock.
Using conventional techniques, CPG companies lack the ability to check promotion-display compliance in customer outlets with existing agreements to make sure that their products are always fully stocked and well merchandized on shelves or at display locations. Material loss is a problem and the current paper-based systems make it difficult to locate and track problems since route accounting may not take place for some days after an event.
Therefore, it is desirable to have a customer product delivery system that overcomes the disadvantages of conventional delivery techniques. It is desirable to have a direct store delivery process that provides a higher level of customer interaction with CPG companies and provides flexibility in the direct delivery process.